BUY SELL orders/deals explanation - page 5
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So if last price is always bid price, it is at least questionable. All pending orders will be triggered at bid price ? A little weird in my opinion.
Alain, you "got the point"... pending orders must be triggered by the last price (that's why it's so important). However, at least for MT5, they're being executed by the bid and the ask prices while trading Forex...
For me it's really intriguing, because when I trade in the stock market with MT5, pending orders are correctly triggered by the last price...
Alain, you "got the point"... pending orders must be triggered by the last price (that's why it's so important). However, at least for MT5, they're being executed by the bid and the ask prices while trading Forex...
For me it's really intriguing, because when I trade in the stock market with MT5, pending orders are correctly triggered by the last price...
Yes, seems we are now on the same path. I will do some tests when market will be open. After that I think we have to ask to Metaquotes some explanations and eventually to brokers too.
As with most things, IMO, this is one of those things which can only be answered through the following.
1) We'll have to perform a logging testing of the so-called last.price Is it really always the bid?
2) We'll have to ask metaQuotes to explain her documentations vs the discrepancy we're seeing.
So far, what has been the experience of allot of people regardless of broker/execution is the case that Malacarne describes within his diagrams.
Like I've said before and I'll repeat. I do-not pretend to know everything about mt5. However, lets leave the STOP LIMIT ORDERS aside for a moment and focus on pending orders most people are familiar with. The Limit_Orders || Take_Profit || Stop_Loss Order.
Within the Example1 provided by Malacarne , and from the example from investopedia, the price must first approach the Trigger. Which Price??? I don't have enough experience with this type of order to say. Should I have to guess, I would say its the Ask, because a) He gives the impression that the Trigger was met. and B) From the diagram, there's no indication that the Bid hits the trigger before going back down.
A Buy_Limit order cannot be placed unless the Desired_Price is below it. So the price action comes form below .... breaks through the trigger price ... the limit order gets set for <trigger price. At this point, his example isn't much different from my 1.54321 example above. Now should the spreads widen, and bid continues going down, it'll give the appearance the the entry condition was met. But in reality the Ask price was never met. The Ask might just stay where it was ... or continue going higher while Bid kept going lower.
I cannot answer for metaQuotes about the language of their documentation. But it does mention "always performed by the Bid and Ask". The question of [ if the last.price creates a trigger for STOP LIMIT ORDER ] is the one which would be more interesting to me. Should I need an answer about that, I'd direct my question to MetaQuotes and the Brokers Themselves.
Alain, you "got the point"... pending orders must be triggered by the last price (that's why it's so important). However, at least for MT5, they're being executed by the bid and the ask prices while trading Forex...
For me it's really intriguing, because when I trade in the stock market with MT5, pending orders are correctly triggered by the last price...
As with most things, IMO, this is one of those things which can only be answered through the following.
1) We'll have to perform a logging testing of the so-called last.price Is it really always the bid?
2) We'll have to ask metaQuotes to explain her documentations vs the discrepancy we're seeing.
....I totally agree with that, I will do it and post the results here.
Ubzen: As far as the Last.Price, I cannot foresee it being very helpful. Therefore, I'll have to say that my Opinion is that its Useless for Forex.
I am not ready to say that, maybe you are right, but maybe not, I don't see any evidence about that for now.
Ubzen:...
A Buy_Limit order cannot be placed unless the Desired_Price is below it. So the price action comes form below .... breaks through the trigger price ... the limit order gets set for <trigger price. At this point, his example isn't much different from my 1.54321 example above. Now should the spreads widen, and bid continues going down, it'll give the appearance the the entry condition was met. But in reality the Ask price was never met. The Ask might just stay where it was ... or continue going higher while Bid kept going lower.
...
An important "detail" : this is not true, a buy_limit order can be placed at any price above or below the market. But a buy_limit placed above the market will be triggered almost immediately. It's to the trader to use this kind of order correctly.
Of course for your explanation, the buy_limit has to be placed correctly, below the current market price. Your reasoning isn't good, for a buy_limit order the price action comes from above.
Nice discussion, indeed, since market business models and technologies are very dynamic, so probably just forum like this can stress and address such doubts.
I think that liquidity is the main actor here, even for traders, business model guys and tech guys.
Scalper, for instance, can be good for some traders, and a challenge for programmers, but can be a bad business model for brokers, so most of them avoid this. Like trading the news, we have tech/business models interest conflicts.
This happens, in my opinion, because without liquidity we have higher risks, even for traders and brokers. And, as brokers rules, traders and programmers must adapt their EAs to these rules, or change their brokers.
Actually, as we aren't brokers (at least most of us) I think that last price matters, as Bid and Ask price, in any market, mainly when liquidity is critical.
Anyway, probably after we reach a consensus (that still looks far) traders, tech and model guys will change it all again, and we will come back again ;-)
If the ask is sitting @ 1.54321 and someone places a buy_limit order for 1.54322. The buy limit will be triggered almost immediately. The Desired_Price is below it
.
I think we both can agree on that one.
Nice discussion, indeed, since market business models and technologies are very dynamic, so probably just forum like this can stress and address such doubts.
I think that liquidity is the main actor here, even for traders, business model guys and tech guys.
Scalper, for instance, can be good for some traders, and a challenge for programmers, but can be a bad business model for brokers, so most of them avoid this. Like trading the news, we have tech/business models interest conflicts.
This happens, in my opinion, because without liquidity we have higher risks, even for traders and brokers. And, as brokers rules, traders and programmers must adapt their EAs to these rules, or change their brokers.
Actually, as we aren't brokers (at least most of us) I think that last price matters, as Bid and Ask price, in any market, mainly when liquidity is critical.
Anyway, probably after we reach a consensus (that still looks far) traders, tech and model guys will change it all again, and we will come back again ;-)
I think we have to talk here from the point of view of a trader, and even a trader which use MT5 platform. All others point of view has to be clearly identified as such, and can only be interesting from a theoretical point of view as we don't have means the experiment it.
About liquidity, sorry again, but I don't see why you introduce this parameter and how it's related to the current discussion, can you give us some details about your point ?
If the ask is sitting @ 1.54321 and someone places a buy_limit order for 1.54322. The buy limit will be triggered almost immediately. The Desired_Price is below it .
I think we both can agree on that one.
For you the "desired price" is market price ? Sorry but I don't understand what you find funny here.
Maybe I wrongly understood your previous post ?